A plunge in tourism and business has been reported with a spate of Chinese incursions being cited as among the factors.

At Panaroma Hotel, which offers typical Ladakhi food, the business is down this season.

"We are running this hotel for the last 20 years or so and every year there is good business happening. But this season it is not so good. The condition got worse as lot of tourists who had booked the rooms, cancelled their reservation as the news of Chinese incursion came out," a senior staff member of the hotel, who did not wished to be named, told .

"Generally we have 100 per cent occupancy but this season is it is almost down to 50 per cent. We are hoping things will be better," he added.

Leh View cafe, which is the market area, has a similar story. "We have been doing business for eight years but this is one of the worst seasons for us. Our business is only little over 30 per cent this season. This is to due to the Chinese incursion," the owner Muzamil Billai, who came to Ladakh from Kashmir, said.

People at Thongsal Resort, who are in this business since 20 years, too reported a drop in foreign tourists this season. The local market here offers a variety of knick-knacks for tourists like woolen clothes to Tibetian jewellery, bags,footwear, carpets and local food at various cafes and restaurants but things have not been very great business wise this season.

At Amulet Nepal shop Dinesh Raj Singh, the owner, offers a variety of woolen clothes and T-shirts. "For all of us July to August-September is a peak season as lot of tourists come here. But this season, business is down everywhere here. Besides Chinese incursion, the rising prices of the airfare are also the reason for this downfall,"Singh said.

Even the Refugee Market where lot of local people set up stalls and sell Tibetian jewellery is facing a slump."We just started this business a year ago, last year was pretty good but this time the case is different. We are not making profit despite selling accessories at lower prices. We are already facing electricity issues and on top of this business is decreasing. We are trying to venture into other business," Boomlaji, a shopper, said.

Jammu and Kashmir Urban Development Minister Rigzin Jora too had expressed displeasure over media coverage of Chinese incursion as it brought down tourism while opening the Laddakh International Film Festival on Friday.